How Has the COVID-19 Pandemic Affected the Dental Transitions Market?

By David Haynes, MBA, Vice President of National Practice Sales

The COVID-19 pandemic has affected every industry to some degree. Dentistry took a particularly hard hit at the beginning of the pandemic as practices temporarily closed. Many dentists who are looking to sell their practices in the near future wonder how these changes have affected the current dental transitions market. 

Demand

At the time of writing this article, the U.S. dental transitions market is currently very solid. We are seeing fairly strong demand among buyers in urban areas, and that demand is also reaching out to more rural locations. Certain growing, secondary markets that tended to be overlooked are now generating much more interest among dental practice buyers.

Valuations

Practice valuations are more complicated than they’ve ever been before. Normally, practices have fairly steady or growing trend lines in their financials that are used in appraisals. Because of COVID-19, many dentists had a down year in 2020, which means dentists will need to gather additional financial information to guide the valuation.

Potential Pitfalls

In this current market, practice owners face a variety of pitfalls when trying to sell their practices on their own. These issues include maintaining confidentiality, negotiating agreements and navigating the closing process. An experienced broker can assist you to ensure you get the most for your practice in this current market. 

Menlo Dental Transitions exists to help dentists through the transition process and has done so for hundreds of practices across the country. Please contact our team to discuss your upcoming transition or check out our FAQs to learn more.

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Looking for more information about the current U.S. dental transitions and employment markets? We invite you to watch this market update presented by me, David Haynes, and my business associate Dan Blair, MBA, formerly of Menlo Dental Consulting.